Despite the local property market in 2018/2019 remaining challenging, Eastern & Oriental Bhd (E&O) is optimistic. Group managing director Kok Tuck Cheong said E&O would launch two residential developments in Kuala Lumpur and these are among several projects for long-term value creation.

Located on a 0.58ha site at the intersection of Jalan Conlay and Jalan Kia Peng, the first project is called The Conlay. It is the group's second high-rise development joint-venture project with Japan's developer Mitsui Fudosan Co Ltd with the first being The Mews Serviced Residences in Kuala Lumpur which has a gross development value (GDV) of RM469 million. E&O and Mitsui Fudosan entered into a shareholders' agreement for The Conlay in 2015.

Market conditions held back the launch of 298 units of serviced apartments worth RM800 million at an indicative price of above RM2,000 per sq ft which was to be in December of the same year.

E&O decided to re-examine the product offering to ensure that it was well differentiated from others. According to Kok, The Conlay is currently at the detailed design stage and slated for launch early next year. "Our Conlay project is expected to comprise 491 units of serviced apartments with an estimated GDV of RM896 million," he said. The second residential development in Kuala Lumpur is at an exclusive and elevated 1.54ha site in Damansara Heights called The Peak, which will have an estimated GDV of RM278 million.

E&O will also launch its maiden residential project and a neighbourhood retail at Seri Tanjung Pinang Phase 2A (STP2A) development in Penang island in the second half of next year, it said in a statement on the company's performance for the fiscal year ended March 31, 2018.

More detailed design works for STP2A based on the parameters of the broad conceptual master plan are in progress, Kok said.